Praxair to Double the Neosho Plant’s Capacity

Praxair announced an expansion

On February 11, Praxair, the wholly owned subsidiary of Linde (LIN), announced that it will double the capacity of the plant in Neosho, Missouri. The expansion plans are due to growing demand from Missouri, Arkansas, Oklahoma, and Kansas. The demand is from aerospace, electronics, refining, chemicals, and other industries.

Praxair to Double the Neosho Plant’s Capacity

The production capacity expansion is expected to be completed by 2020. However, Praxair didn’t disclose the financial aspects of the expansion. Andy Sarantapoulas, Praxair’s South Region vice president of the US industrial gas business, said, “This investment will strengthen supply reliability and help us meet the future demands of our liquid oxygen and nitrogen customers. We are proud to be part of the Neosho community and look forward to growing our presence in this region.”

Linde’s stock price update

Linde stock rose 4.5% and closed at $168.54. Due to the higher stock price, the stock traded 5.2% above the 100-day moving average price of $160.21, which indicates bullishness in the stock. However, analysts see more upside in the stock. Analysts have recommended a target price of $175.2, which implies a return potential of 4.0% over its closing price on February 15. Linde’s relative strength index of 64 indicates that the stock isn’t overbought or oversold.

Investors looking to invest in Praxair indirectly could invest in the Materials Select Sector SPDR Fund (XLB). XLB has invested 16.2% of its portfolio in Linde. The fund’s other holdings include LyondellBasell (LYB), FMC (FMC), and Albemarle (ALB) with weights of 4.8%, 2.0%, and 1.5%, respectively, as of February 15.